A suggestion by a Jersey politician to raise taxes for the super-rich has been dismissed by the Jersey government.
Jersey has long been famed for its low taxes, which is one of the main reasons so many wealthy individuals choose to place their interests into the island. Currently, the rate for people earning £625,000 or more is 20 percent on that initial £625,000 and then just one percent from then on.
Contrastingly, people who have lower incomes are charged 20 percent at all times.
Recently, Jersey politician Trevor Pitman challenged this lax rate for high-earners, and called for a referendum to address the matter. However, the Jersey government has decided against this as they fear a raising of the rate could deter high-earners from moving to the offshore jurisdiction.
A spokesman for the Jersey government said: “This seems to be an attempt to revisit a matter that the States has already fully considered and strongly supported. The States voted overwhelmingly against Deputy Pitman's recent attempt to increase the tax rates that apply to high net worth individuals. Clearly, the vast majority of States Members welcomed the important contribution that these individuals make to Jersey.”
Jersey is seen as one of the premier jurisdictions for offshore finance.